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Gold steadies after sharp drop as Fed outlook stays in focus

XAU/USD was up 0.9% to around $4,152 after falling nearly 4% on Monday to a low of $4,110.

Reported · Written up by our desk · Major Pairs

Gold prices steadied on Tuesday after a sharp sell-off earlier in the week, with XAU/USD trading around $4,152, up 0.9% on the day, according to FXStreet. The rebound appears to be corrective, as traders continue to anchor the metal’s direction to expectations for further Federal Reserve interest rate hikes.

FXStreet said gold slid nearly 4% on Monday, reaching $4,110, its lowest level since August 5. The decline was tied to higher US Treasury yields, with the 10-year yield holding near 5.24%, just below Monday’s peak of 5.27%, the highest since 2007.

The outlet added that the broader bond sell-off has been influenced by heightened inflation concerns, while an ongoing US-Iran standoff over the Strait of Hormuz has helped keep oil prices elevated. FXStreet also noted that Iranian Foreign Minister Abbas Araghchi said Tehran is holding indirect talks with the United States through Qatari mediators in New York, and Iran is awaiting Washington’s formal response on reopening the Strait of Hormuz.

Latest closeGold $4,147.50 ▼4.0%

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